Fortescue Metals Enters Syndicated Finance Lease Facility
First Published Sunday, 13th May 2012 11:55 pm - © 2012 Dow Jones
MELBOURNE -(Dow Jones)- Australian iron ore producer Fortescue Metals Group Ltd. (FMG.AU) has secured up to US$965 million in funding to support the acquisition of the mining fleet for its expansion plans in the western Pilbara region.
Fortescue has entered a syndicated finance lease facility that was strongly supported by Australian and international financial institutions, the Perth-based company said in a statement late Friday.
The facility will initially remain unused and may be progressively drawn over the next 24 months, funding mining fleet acquisitions if required, Chief Financial Officer Stephen Pearce said.
Fortescue raised US$2 billion in March in five-year and 10-year senior unsecured notes to help fund the expansion of its production capacity to 155 million metric tons a year in 2013 from about 55 million tons now.